DRUG TESTING

Get-Tough Policies Earn Dividends In Higher Productivity, Lower Costs

Birmingham-based Western Supermarkets has seen major improvements in its
workplace environment since enacting a drug-free policy nearly two years
ago, officials say.

On-the-job accidents decreased from 36 in 1996 to 13 last year, lowering
its workers' compensation costs dramatically, said Toni Gilmer, vice
president of human resources. Employee morale and worker productivity also
climbed significantly, she said.

"We couldn't tell if a lack of drugs caused the decline, but I've seen a
marked decrease in claims since we began our drug screening policy," Ms.
Gilmer said.

Western Supermarkets is among a number of area companies that have turned
up the heat in attempting to stamp out drug abuse. Many conduct random drug
tests of workers suspected of drug use. Some companies have strengthened
their anti-drug policies.

While few businesses want to think about whether their employees are using
illegal drugs, the continued popularity of marijuana and the rise of crack
cocaine have made the problem so prevalent that it can't be ignored, Ms.
Gilmer said.

One major reason businesses are beefing up their fight against drug abuse
is a new rule enacted this year regarding workers' comp payments. In the
past, even on-the-job accidents involving drug use were covered. Now,
workers' comp claims attributed to drugs are no longer paid, leaving
companies to foot the entire bill, said Sheila Jones, president of
Employment Screening Services in Birmingham.

"With workers' comp now denying claims if accidents are caused by drug
problems, that increases company liability costs," she said. "That caught
the attention of a lot of businesses."

Drug-Free Discount

However, workers' comp will pay a 5 percent discount on claims filed by
companies that have drug-free guidelines in place, Ms. Jones said. That's
enough for companies to pay for their own drug screening programs.

Drug use by employees can take a huge toll on businesses, said Tom Eden
III, a labor lawyer at Wallace, Jordan, Ratliff & Brandt in Birmingham. At
a recent seminar sponsored by St. Vincent's Hospital's Occupational Health
Clinic, he cited some sobering statistics:

Medical claims by drug-using employees were 8.5 times more than the number
of claims by other employees, according to a Georgia Power study.

Total absenteeism by drug users was 3.5 times greater than absenteeism by
other employees.

Companies paid 1.8 times more for absenteeism by drug users than for
absenteeism by other employees.

Workers' comp payments were 10.5 times greater for drug users than for
other employees.

In 1996, 70 percent of men arrested in Jefferson County tested positive for
cocaine, marijuana or other drugs, according to a survey cited in The
Birmingham News on June 8, 1997. The same year, 59 percent of women
arrested in Jefferson County tested positive for drug use, the survey said.

"Drug use is a tremendous problem in Jefferson County," Eden said.

Alfred Lamoureux of Birmingham based National Medical Resources, which
sells a drug testing product called Status DS, said enacting on-site
screening devices is a major way companies can catch drug problems among
employees and job applicants early. Doing in-house drug screening can be
much cheaper than contracting outside professionals and is relatively
simple to do, he said.

Forrest Cook, vice president of human resources at National Computer Print
in Birmingham, said he prefers to contract an outside laboratory to do his
firm's testing.

"I don't want to be in the drug screening business," Cook said. "I'd prefer
a professional handle it because it's a very sensitive issue."

Cook said businesses are taking a much stronger stance against drug use
than in the past. He said his company promotes its drug-free environment
and zero tolerance toward drug and alcohol abuse among workers as a
recruiting tool.

"Being an industrial company dealing with heavy equipment, it would put us
at too much of a risk not to do drug screening," Cook said.

1998 The Birmingham News. Used with permission.